Animation: The World’s Largest Megacities by 2100
Throughout the course of human history, the biggest cities have always seemed impossibly large.
For many millennia, it was almost unfathomable for a city to sustain more than 1 million residents. In fact, it wasn’t until the 19th century that the largest cities globally, such as London and Beijing, were able to consistently hold populations beyond that impressive mark.
Despite this, in the modern era, we’ve quickly discovered that a city of 1 million people isn’t remarkable at all. In China alone, there are now over 100 cities with a million people today – and as such, our mental benchmark for what we consider to be a “big city” has changed considerably from past times.
Just like a city the size of modern Tokyo was hard to imagine for someone living in the 19th century, it can be an extremely difficult thought experiment for us to visualize what future megacities will look like.
Researchers at the Global Cities Institute have crunched the numbers to provide us with one view of the potential megacities of the future, extrapolating a variety of factors to project a list of the 101 largest cities in the years 2010, 2025, 2050, 2075, and 2100.
Today’s video uses this data – it’s also an extension to the previous work we did based on the report here.
The Largest Megacities by 2100
According to the report, human geography will look completely unfamiliar by the turn of the century.
Here is a list of the 20 largest megacities projected for 2100:
|#3||73.7 million||Dar Es Salaam||Tanzania|
|#14||40.9 million||Blantyre City||Malawi|
|#20||35.8 million||Addis Ababa||Ethiopia|
By the year 2100, it’s estimated that 13 of the world’s largest megacities will be located in Africa. Meanwhile, India will hold three of them – and there will be zero of them found in the Americas, China, or Europe.
Here’s a final look at the top three:
#1: Lagos, Nigeria
Nigeria’s largest city, Lagos, is expected to push the limits of how big a metropolis can get. Already, Lagos has seen explosive growth over the past few decades, and is growing so fast that no one really knows how many people live there. Over 2,000 people emigrate to the city every day, and current population estimates vary widely from 11 to 21 million inhabitants.
Either way, by the turn of the century, Lagos is projected to have a population north of 88 million.
#2: Kinshasa, DRC
Kinshasa, the capital of the Democratic Republic of Congo is projected to be the second largest city in the world with a population of 83 million.
#3: Dar Es Salaam, Tanzania
Dar Es Salaam, a city on the coast of Tanzania, has a population of just 4.4 million today. By 2100, its population is projected to jump by a whopping 1,588%, putting the total at 74 million inhabitants.
Taking Advantage of the Infrastructure Boom: The Case for Taxable Municipal Bonds
Taxable municipal bonds will help finance the $4 trillion needed for U.S. infrastructure repairs. Here’s a case for why they are an interesting investment.
The Case for Taxable Municipal Bonds for Investors
If you’re a homeowner, there are probably a few things you’ve been neglecting to do. Perhaps the kitchen needs upgrading, or the roof needs replacing. We tend to procrastinate on these improvements due to large renovation costs, until it hits a point where we can’t ignore them anymore. This is the state that U.S. infrastructure has reached—on a national scale.
Today’s infographic from New York Life Investments highlights the level of disrepair in U.S. infrastructure. It also explores why taxable municipal bonds, which will finance the required infrastructure upgrades, provide such an interesting investment opportunity.
Falling Apart at the Seams
The American Society of Civil Engineers (ACSE) regularly assesses the nation’s infrastructure—things like bridges, airports, and drinking water—and scores it in a ‘report card’. After decades of neglect, the U.S. only scored a D+ in 2017.
The ASCE estimates that $4 trillion is needed to bring infrastructure up to a B grade, $1.3 trillion of which will be provided by state and local governments.
The urgent needs for increased investment in America’s infrastructure continue to grow and our nation’s economic vitality and quality of life are at stake.
— Ed Mortimer, U.S. Chamber Vice President of Transportation and Infrastructure
U.S. municipal bonds will be the primary funding source for this massive financing need. These bonds are quite popular with individual U.S. investors, as the interest income from most municipal bonds is not subject to federal income tax.
However, the U.S. tax code limits the volume of non-taxable bonds issued, and the purposes for issuing them. As a result, many local and state governments have been turning to taxable municipal bonds to finance their infrastructure projects.
The Muni Opportunity
Taxable municipal bonds are a potentially attractive investment for many reasons.
1. Competitive Historical Yield and Strong Returns
In the last decade, a lagging global economy led to historically low interest rates—many sovereign (national) bonds fell into negative territory. Taxable municipal bonds provided an alternative source of yield potential, outpacing the yields of comparable treasury bonds in some cases.
Not only that, but in the post-crisis era, taxable municipal bonds have averaged a return of 6.9% per year, beating the 4.6% performance on U.S. corporate investment-grade bonds, a staple in most institutional portfolios.
2. High-Quality, Stable Credit Ratings
Most municipal bonds are high quality with low default rates, making them attractive to risk-conscious investors.
|U.S. Municipals||Global Corporates|
|Rating Spread||Over 76% rated A+ or better||Only about 10% are AA rated|
|Tiny portion below investment grade||Nearly half are below investment grade|
|Default Rate||0.81% for those rated BAA by S&P||0.84% for those rated AAA by S&P|
Historically, municipal bond ratings have also been far more stable than that of global corporates.
3. Inefficient pricing
The municipal bond market is highly fragmented, and most issues are too small to be included in a market index.
This market fragmentation, combined with limited sell-side research and many buy-and-hold investors, often leads to inefficient pricing. Active investors have the potential to generate higher returns by applying their credit research and trading skills.
4. Low Correlations
Correlation measures the degree to which two securities move in relation to each other. In general, taxable municipal bonds have a low correlation to other fixed-income sectors. This means they help provide portfolio diversification and reduce volatility.
5. Longer durations
Since taxable municipal bonds fund long-term capital projects, they are usually financed with longer maturing bonds. Institutional investors welcome this source of long-duration assets, as they can match them up with their long-dated obligations.
A Compelling Portfolio Addition
Taxable municipal bonds have many positive qualities that make them a strong contender for investment. When added to a diversified fixed-income portfolio, they may also improve the risk/return profile.
As the U.S. begins to revitalize its infrastructure, taxable municipal bonds present a strong—and often overlooked—opportunity for investors.
Ranking the World’s Most Populous Cities, Over 500 Years of History
This two-minute animation shows changes in the last 500 years of historical rankings for the world’s 10 most populous cities.
Animation: The Most Populous Cities, Over 500 Years
What do Beijing, Tokyo, Istanbul, London, and New York City all have in common?
Not only are they all world-class cities that still serve as global hubs of commerce, but these cities also share a relatively rare and important historical designation.
At specific points in history, each of these cities outranked all others on the planet in terms of population, granting them the exclusive title as the single most populated city globally.
Ranking the World’s Most Populous Cities
Today’s animation comes to us from John Burn-Murdoch with the Financial Times, and it visualizes cities ranked by population in a bar chart race over the course of a 500-year timeframe.
Beijing starts in the lead in the year 1500, with a population of 672,000:
|Rank||City||Population in Year 1500|
In the 16th century, which is where the animation starts, cities in China and India were dominant in terms of population.
In China, the cities of Beijing, Hangzhou, Guangzhou, and Nanjing all made the top 10 list, while India itself held two of the most populous cities at the time, Vijayanagar and Gauda.
If the latter two names sound unfamiliar, that’s because they were key historical locations in the Vijayanagara and Bengal Empires respectively, but neither are the sites of modern-day cities.
The 1 Million Mark
For the first minute of animation—and up until the late 18th century—not a single city was able to eclipse the 1 million person mark.
However, thanks to the Industrial Revolution, the floodgates opened up. With more efficient agricultural practices, better sanitation, and other technological improvements, cities were able to support bigger populations.
Here’s a look at the biggest cities in the year 1895:
|Rank||City||Population in Year 1895|
|#2||🇺🇸 New York||3,712,000|
|#6||🇷🇺 St. Petersburg||1,286,000|
In the span of roughly a century, all of the world’s biggest cities were able to pass the 1 million mark, making it no longer a particularly exclusive milestone.
Modern City Populations
Finally, let’s look at the modern list of the top 10 most populous cities, and see how it compares to rankings from previous years:
|Rank||City||Population in Year 2018|
|#6||🇧🇷 Sao Paulo||21,698,000|
|#7||🇲🇽 Mexico City||21,520,000|
|#10||🇺🇸 New York City||18,713,000|
Interestingly, the modern list appears to be a blend of both previous rankings from the years 1500 and 1895, listed above.
In 2018, cities from China and India feature prominently, but New York City and Tokyo are also included. Meanwhile, Latin America has entered the fold with entries from Mexico and Brazil.
The Future of Megacities
If you think the modern list of the most populous cities is impressive, check out how the world’s megacities are expected to develop as we move towards the end of the 21st century.
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